TOPIC: “Patanjali Ayurveda Limited”

It is FMCG company located in Uttarakhand, India, initially founded in the year 1997 by Acharya
Bala Krishna and Baba Ramdev. The company serves a combination of yoga for inner peace and
FMCG services for external maintenance of the body in order to establish an appropriate balance. It is
one of the fastest growing companies of India as recorded in CLSA and HSBC reports. Its products
are mainly manufactured in Uttarakhand India, but also has some of its manufacturing units in Nepal
where the products are manufactured under the trademark of “Nepal Gram-Udyog”.

The company initially started getting into the commercial sector by production of Ayurvedic
Medicines and their distribution from their specific Patanjali Distribution Centres. These distribution
centres gained popularity because of certain reasons like: Availability of Patanjali Distribution
Centres at almost every accessible location of the country, free of cost medical consultation at these
centres and feasible prices of the products available, etc. It manufactures nearly 800 products. These
products ranges are: nearly every category of personal care - soaps, shampoos, dental care, balms,
skin creams; food products - biscuits, ghee, juices, honey, mustard oil, sugar and much more; etc. Its
products are relatively cheaper than the other products. They directly coordinate with the farmers and
producers of raw materials which further helps them to cut the intermediary costs and hence
eventually helping them to improve profits, as a result they get the opportunity to keep costs lower
than their competitors. Hence being an Indian brand of a trusted social personality who has touched
the life of almost every Indian, makes it reach in the market strong and hence eventually leading to
consistently growing sales:

Source of image: https://www.livemint.com/Companies/ZLN3sCZjnx49GSo1jAma9H/Patanjali-sales-

growth-grinds-to-a-halt-in-FY18.html

PESTAL Analysis:
Political:
  Present political climate is favourable to Patanjali as it is close to government. Also, it is part
of the government initiative like Make in India campaign.
 Acts as a medium for Ayush Ministry to promote Ayurveda.
Economic:

 Impact of GST on sales.

 Since the raw materials for the manufacturing are from the natural environment and the
company focuses only in retailing in India alone, the factors like fluctuating global economy
and currency fluctuations have no significant impact.
Social:

 Available at affordable prices.

 Accessibility is higher in every segment.
 Using organic products.
 Removed intermediary costs helps farmers and other raw material producers to earn more.
Technological:

 With the help of biologists and technology, better options are being created in the company.
 With the help of the available technology, new herbs are being notified and being used in the
new medicines.
 Company is also working for new farming ways.
Legal:

 There are several rules and laws for Ayurvedic medicines and the process by which
medicines are prepared:
 The Medicine Central Council Act-1970,
 The Drugs and Cosmetics Act 1940 and rules made thereunder
 The Drugs and Magic Remedies Act 1954 and the rules made thereunde